Think before buying insurance ‘bolt-ons’, the cheap policies aimed at boosting profits

While premiums may be low, questions remain over whether the cover is worth it

In Superman III, Richard Pryor’s character Gus Gorman discovers a way to get rich quick: he skims all of the half-cents paid to the staff in the company he works for into an account for his own benefit. The simple tactic rests on the belief that because the amounts of money are so small, the individuals will not see them going.

Martyn James from consumer help website Resolver uses the strategy from the 1983 film as a comparison for a growing area in the insurance industry – “bolt-on” or “add-on” policies which cost little, can provide minimal cover, yet are hugely profitable for the companies involved. The last few years have seen an increase in those that cover lost car keys, cancelled gigs, missing internet shopping deliveries and cover for identity fraud, among many others.

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